Free Trade Agreements, including the one with India and UK, offer favourable market access to MSMEs: FKCCI
A product made in Bengaluru can reach London, Dubai, Sydney, Tokyo, or Toronto within days. However, to truly compete globally, businesses require favourable market access
A product made in Bengaluru can reach London, Dubai, Sydney, Tokyo, or Toronto within days. However, to truly compete globally, businesses require favourable market access, more than quality products, said Uma Reddy, President, FKCCI. “We are living in an era where markets are no longer confined by geographical boundaries. What our businesses need are favourable market access,’’ she said emphasising the crucial role of Free Trade Agreements (FTAs). Speaking at an outreach programme organised by the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), in association with the Export Promotion Council for Handicrafts (EPCH), on Wednesday (July 15, 2026), she said, these FTAs, including the recent one between India and UK, presented transformative opportunities for Karnataka’s diverse industries, from engineering and electronics to textiles, garments, coffee, spices, biotech, IT, and handicrafts.
“Karnataka’s artisans and handicraft exporters carry forward our cultural heritage and providing them better international market access ensures both economic growth and cultural preservation,’’ she added. The theme of the programme was “Free Trade Agreements (FTAs) and Comprehensive Economic and Trade Agreements (CETAs) with various countries”. It was held along with a special session on the Authorised Economic Operator (AEO) programme organised by Bangalore Customs. For MSMEs, which number over 6.3 crore across India and contribute nearly 30% to the GDP, the effective use of FTAs can be truly transformational.
FTAs are aimed to reduce tariffs, simplify procedures, encourage investments and open up new markets. India has recently signed key agreements with the UAE, Australia, and EFTA countries, and concluded negotiations on the India-UK CETA. Directorate General of Foreign Trade (DGFT) has notified the procedure for
allocating tariff rate quotas (TRQS) for Import of Vehicles from the UK under CETA, which is effective from July 15. Under FTA agreements, the Customs Duty on vehicles would be 10% instead of the existing duty of 110% which was subject to Annual Quota Limits, she explained.
The BriefWire